Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | Helmerich & Payne, Inc. | |
Entity Central Index Key | 46,765 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 108,066,141 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 907,032 | $ 729,384 |
Short-term Investments | 49,565 | 45,543 |
Accounts receivable, less reserve of $1,828 at June 30, 2016 and $6,181 at September 30, 2015 | 351,317 | 445,948 |
Inventories | 128,885 | 128,541 |
Deferred income taxes | 17,206 | |
Prepaid expenses and other | 79,021 | 64,475 |
Assets held for sale | 21,772 | |
Current assets of discontinued operations | 80 | 8,097 |
Total current assets | 1,537,672 | 1,439,194 |
Investments | 99,898 | 104,354 |
Property, plant and equipment, net | 5,306,434 | 5,563,170 |
Other assets | 32,515 | 40,524 |
Total assets | 6,976,519 | 7,147,242 |
Current liabilities: | ||
Long-term debt due within one year less unamortized debt issuance costs | 39,234 | 39,094 |
Accounts payable | 92,692 | 108,169 |
Accrued liabilities | 194,645 | 197,557 |
Current liabilities of discontinued operations | 38 | 3,377 |
Total current liabilities | 326,609 | 348,197 |
Noncurrent liabilities: | ||
Long-term debt less unamortized discount and debt issuance costs | 493,150 | 492,443 |
Deferred income taxes | 1,358,093 | 1,295,916 |
Other | 93,221 | 110,120 |
Noncurrent liabilities of discontinued operations | 3,984 | 4,720 |
Total noncurrent liabilities | 1,948,448 | 1,903,199 |
Shareholders' equity: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 111,383,982 shares and 110,987,546 shares issued as of June 30, 2016 and September 30, 2015, respectively and 108,063,579 shares and 107,767,915 shares outstanding as of June 30, 2016 and September 30, 2015, respectively | 11,138 | 11,099 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ||
Additional paid-in capital | 442,883 | 420,141 |
Retained earnings | 4,438,748 | 4,648,346 |
Accumulated other comprehensive loss | (3,156) | (1,377) |
Treasury stock, at cost | 188,151 | 182,363 |
Total shareholders' equity | 4,701,462 | 4,895,846 |
Total liabilities and shareholders' equity | $ 6,976,519 | $ 7,147,242 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
Accounts receivable, reserve (in dollars) | $ 1,828 | $ 6,181 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 111,383,982 | 110,987,546 |
Common stock, shares outstanding | 108,063,579 | 107,767,915 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues: | ||||
Drilling - U.S. Land | $ 285,028 | $ 494,615 | $ 1,004,116 | $ 2,103,125 |
Drilling - Offshore | 30,492 | 57,071 | 106,697 | 189,386 |
Drilling - International Land | 47,983 | 106,551 | 171,529 | 304,262 |
Other | 2,983 | 3,208 | 10,182 | 11,129 |
Total operating revenues | 366,486 | 661,445 | 1,292,524 | 2,607,902 |
Operating costs and other: | ||||
Operating costs, excluding depreciation | 186,146 | 350,640 | 684,401 | 1,377,202 |
Depreciation | 138,690 | 144,965 | 422,336 | 433,445 |
Asset impairment charge | 6,250 | 6,250 | ||
General and administrative | 46,496 | 29,253 | 112,381 | 96,984 |
Research and development | 2,707 | 3,329 | 7,941 | 12,344 |
Income from asset sales | (547) | (1,791) | (7,820) | (8,819) |
Total operating costs and expenses | 379,742 | 526,396 | 1,225,489 | 1,911,156 |
Operating income (loss) from continuing operations | (13,256) | 135,049 | 67,035 | 696,746 |
Other income (expense): | ||||
Interest and dividend income | 778 | 1,588 | 2,310 | 4,447 |
Interest expense | (6,407) | (6,136) | (16,652) | (9,326) |
Other | 534 | (281) | 926 | 88 |
Total other income (expense) | (5,095) | (4,829) | (13,416) | (4,791) |
Income (loss) from continuing operations before income taxes | (18,351) | 130,220 | 53,619 | 691,955 |
Income tax provision | 2,842 | 39,321 | 33,740 | 243,891 |
Income (loss) from continuing operations | (21,193) | 90,899 | 19,879 | 448,064 |
Income (loss) from discontinued operations before income taxes | 2,193 | (27) | 2,241 | (118) |
Income tax provision | 2,200 | 6,113 | (77) | |
Loss from discontinued operations | (7) | (27) | (3,872) | (41) |
NET INCOME (LOSS) | $ (21,200) | $ 90,872 | $ 16,007 | $ 448,023 |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.20) | $ 0.84 | $ 0.18 | $ 4.13 |
Loss from discontinued operations (in dollars per share) | (0.04) | |||
Net income (loss) (in dollars per share) | (0.20) | 0.84 | 0.14 | 4.13 |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (0.20) | 0.83 | 0.17 | 4.10 |
Loss from discontinued operations (in dollars per share) | (0.04) | |||
Net income (loss) (in dollars per share) | $ (0.20) | $ 0.83 | $ 0.13 | $ 4.10 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 108,047 | 107,652 | 107,970 | 107,759 |
Diluted (in shares) | 108,047 | 108,469 | 108,523 | 108,571 |
Dividends declared per common share (in dollars per share) | $ 0.7000 | $ 0.6875 | $ 2.075 | $ 2.0625 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | $ (21,200) | $ 90,872 | $ 16,007 | $ 448,023 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net of income taxes of $6.1 million and ($1.7) million at June 30, 2016 and ($2.1) million and ($29.5) million at June 30, 2015 | 9,744 | (3,307) | (2,719) | (46,754) |
Minimum pension liability adjustments, net of income taxes of $0.1 million and $0.5 million at June 30, 2016 and $0.1 million and $0.3 million at June 30, 2015 | 314 | 197 | 940 | 590 |
Other comprehensive income (loss) | 10,058 | (3,110) | (1,779) | (46,164) |
Comprehensive income (loss) | $ (11,142) | $ 87,762 | $ 14,228 | $ 401,859 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized depreciation on securities, income taxes | $ 6.1 | $ (2.1) | $ (1.7) | $ (29.5) |
Minimum pension liability adjustments, income taxes | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.3 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 16,007 | $ 448,023 |
Adjustment for loss from discontinued operations | 3,872 | 41 |
Income (loss) from continuing operations | 19,879 | 448,064 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 422,336 | 433,445 |
Asset impairment charge | 6,250 | |
Amortization of debt discount and debt issuance costs | 879 | 485 |
Recovery of bad debt | (3,067) | |
Stock-based compensation | 19,661 | 19,120 |
Pension settlement charge | 3,343 | 1,200 |
Other | 255 | |
Income from asset sales | (7,820) | (8,819) |
Deferred income tax expense | 77,886 | 145,986 |
Change in assets and liabilities: | ||
Accounts receivable | 97,698 | 229,837 |
Inventories | (344) | (22,026) |
Prepaid expenses and other | (6,537) | (30,362) |
Accounts payable | (13,643) | (41,134) |
Accrued liabilities | 14,632 | (64,975) |
Deferred income taxes | 2,673 | 317 |
Other noncurrent liabilities | (18,741) | 40,459 |
Net cash provided by operating activities from continuing operations | 615,340 | 1,151,597 |
Net cash provided by (used in) operating activities from discontinued operations | 70 | (41) |
Net cash provided by operating activities | 615,410 | 1,151,556 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (219,549) | (971,602) |
Purchase of short-term investments | (36,958) | |
Proceeds from sales of short-term investments | 32,681 | |
Proceeds from asset sales | 12,804 | 17,757 |
Net cash used in investing activities | (211,022) | (953,845) |
FINANCING ACTIVITIES: | ||
Proceeds from senior notes, net of discount | 497,125 | |
Debt issuance costs | (32) | (5,202) |
Net increase in bank overdraft | 10,824 | |
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Dividends paid | (224,040) | (223,827) |
Repurchase of common stock | (59,654) | |
Exercise of stock options, net of tax withholding | 483 | (609) |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,104) |
Excess tax benefit from stock-based compensation | 761 | 2,969 |
Net cash provided by (used in) financing activities | (226,740) | 216,522 |
Net increase in cash and cash equivalents | 177,648 | 414,233 |
Cash and cash equivalents, beginning of period | 729,384 | 360,307 |
Cash and cash equivalents, end of period | $ 907,032 | $ 774,540 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated other comprehensive income (loss) | Treasury Stock | Total |
Balance at Sep. 30, 2015 | $ 11,099 | $ 420,141 | $ 4,648,346 | $ (1,377) | $ (182,363) | $ 4,895,846 |
Balance (in shares) at Sep. 30, 2015 | 110,987,000 | 110,987,546 | ||||
Balance (in shares) at Sep. 30, 2015 | 3,220,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 16,007 | $ 16,007 | ||||
Other comprehensive loss | (1,779) | (1,779) | ||||
Dividends declared ($2.075 per share) | (225,605) | (225,605) | ||||
Exercise of stock options, net of tax withholding | $ 20 | 6,263 | $ (5,800) | 483 | ||
Exercise of stock options, net of tax withholding (in shares) | 204,000 | 97,000 | ||||
Tax benefit of stock-based awards | 761 | 761 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 19 | (3,943) | $ 12 | (3,912) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 193,000 | 3,000 | ||||
Stock-based compensation | 19,661 | 19,661 | ||||
Balance at Jun. 30, 2016 | $ 11,138 | 442,883 | 4,438,748 | (3,156) | $ (188,151) | $ 4,701,462 |
Balance (in shares) at Jun. 30, 2016 | 111,384,000 | 111,383,982 | ||||
Balance (in shares) at Jun. 30, 2016 | 3,320,000 | |||||
Balance at Mar. 31, 2016 | (13,214) | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | $ (21,200) | |||||
Other comprehensive loss | 10,058 | |||||
Balance at Jun. 30, 2016 | $ 11,138 | $ 442,883 | $ 4,438,748 | $ (3,156) | $ (188,151) | $ 4,701,462 |
Balance (in shares) at Jun. 30, 2016 | 111,384,000 | 111,383,982 | ||||
Balance (in shares) at Jun. 30, 2016 | 3,320,000 |
CONSOLIDATED CONDENSED STATEME9
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 01, 2016 | Mar. 02, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY | ||||||
Dividends declared (in dollars per share) | $ 0.70 | $ 0.6875 | $ 0.7000 | $ 0.6875 | $ 2.075 | $ 2.0625 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation Unless the context otherwise requires, the use of the terms “the Company”, “we”, “us” and “our” in these Notes to Consolidated Condensed Financial Statements refers to Helmerich & Payne, Inc. and its consolidated subsidiaries. The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “Commission”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2015 Annual Report on Form 10-K and other current filings with the Commission. In the opinion of management all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. The Consolidated Condensed Financial Statements include the accounts of Helmerich & Payne, Inc. and its wholly-owned subsidiaries. Prior to September 30, 2015, for financial reporting purposes, fiscal years of our foreign operations ended on August 31 to facilitate reporting of consolidated results, resulting in a one-month reporting lag when compared to the remainder of the Company. Starting October 1, 2015, the reporting year-end of these foreign operations was changed from August 31 to September 30. The previously existing one-month reporting lag was eliminated as it is no longer required to achieve a timely consolidation due to our investments in technology, ERP systems and personnel to enhance our financial statement close process. We believe this change is preferable because the financial information of all operating segments is now reported based on the same period-end, which improves overall financial reporting to investors by providing the most current information available. In accordance with Accounting Standards Codification (“ASC) 810-10-50-2, “ A Change in the Difference Between Parent and Subsidiary Fiscal Year-Ends ,” the elimination of this previously existing reporting lag is considered a voluntary change in accounting principle in accordance with ASC 250-10-50 “ Change in Accounting Principle .” Voluntary changes in accounting principles are to be reported through retrospective application of the new principle to all prior financial statement periods presented. Accordingly, our financial statements for periods prior to fiscal 2016 have been changed to reflect the period-specific effects of applying this accounting principle. This change resulted in a cumulative effect of an accounting change of $1.6 million, net of income tax effect, to retained earnings as of October 1, 2015. Net loss from continuing operations for the third quarter of fiscal 2016 would have been approximately $2.4 million lower absent the accounting change. Net income from continuing operations for the nine months ended June 30, 2016 would have been approximately $0.8 million higher absent the accounting change. Net loss from discontinued operations would have been approximately $4.0 million more in the three months ended June 30, 2016 absent the accounting change due to a currency devaluation recognized in the quarter ending March 31, 2016, as opposed to the third quarter of fiscal 2016. There was no significant difference in discontinued operations for the nine months ended June 30, 2016 from the accounting change. The impact of this change in accounting principle to eliminate the one-month lag for foreign subsidiaries is summarized below for significant items. Other accounts were minimally impacted. After Voluntary Change in Accounting As Reported Adjustments Principle Three Months Ended June 30, 2015 (in thousands) Operating revenues $ $ $ Operating costs, excluding depreciation ) Net income Diluted earnings per common share — Nine Months Ended June 30, 2015 (in thousands) Operating revenues $ $ $ Operating costs, excluding depreciation Net income Diluted earnings per common share September 30, 2015 (in thousands) Total assets $ $ ) $ Total liabilities ) Total shareholders’ equity ) In November 2015, the Financial Account Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes requiring all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, however, we have elected to early adopt effective October 1, 2015 prospectively. As a result of the adoption, we will no longer have deferred income taxes as a current asset in our Consolidated Condensed Balance Sheet. As more fully described in our 2015 Annual Report on Form 10-K, our contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed. For contracts that are terminated by customers prior to the expirations of their fixed terms, contractual provisions customarily require early termination amounts to be paid to us. Revenues from early terminated contracts are recognized when all contractual requirements have been met. During the three and nine months ended June 30, 2016, early termination revenue was approximately $80.7 million and $189.2 million, respectively. We had $93.0 million and $188.8 million, respectively, of early termination revenue for the three and nine months ended June 30, 2015. Depreciation in the Consolidated Condensed Statements of Operations includes abandonments of $0.9 million for the nine months ended June 30, 2016 compared to $1.2 million and $13.5 million, respectively, for the three and nine months ended June 30, 2015. During the three months ended June 30, 2016, we recorded an asset impairment charge in the U.S. Land segment of $6.3 million to reduce the carrying value in rig and rig related equipment classified as held for sale to their estimated fair values, based on expected sales prices. The rig equipment is from rigs that were decommissioned from service in prior fiscal years and written down to their estimated recoverable value at the time of decommissioning. During the three months ended June 30, 2016, we began actively marketing the equipment. We believe the equipment will be disposed of in under a year. The functional currency for all our foreign operations is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the period presented. Foreign currency gains and losses from remeasurement of foreign currency financial statements and foreign currency translations into U.S. dollars are included in direct operating costs. Included in direct operating costs are aggregate foreign currency losses of $1.1 million and $9.4 million, respectively, for the three and nine months ended June 30, 2016. The losses are primarily the result of a sharp devaluation of the Argentine peso in December 2015. For the three and nine months ended June 30, 2015, we had aggregate currency losses of $0.3 million and gains of $1.5 million, respectively. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations | |
Discontinued Operations | 2. Discontinued Operations Current assets of discontinued operations consist of restricted cash to meet remaining current obligations within the country of Venezuela. Current and noncurrent liabilities consist of municipal and income taxes payable and social obligations due within the country of Venezuela. Expenses incurred for in-country obligations are reported as discontinued operations. In March 2016, the Venezuelan government implemented the previously announced plans for a new foreign currency exchange system. The implementation of this system resulted in a reported loss from discontinued operations of $3.9 million in the first nine months of fiscal 2016, all of which corresponds to the Company’s former operations in Venezuela. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2016 | |
Earnings per Share | |
Earnings per Share | 3. Earnings per Share ASC 260, Earnings per Share , requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock. Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations ) ) ) ) Net income (loss) ) Adjustment for basic earnings per share: Earnings allocated to unvested shareholders ) ) ) ) Numerator for basic earnings per share: From continuing operations ) From discontinued operations ) ) ) ) ) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — Numerator for diluted earnings per share: From continuing operations ) From discontinued operations ) ) ) ) $ ) $ $ $ Denominator: Denominator for basic earnings per share — weighted-average shares Effect of dilutive shares from stock options and restricted stock — Denominator for diluted earnings per share — adjusted weighted-average shares Basic earnings per common share: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations — — ) — Net income (loss) $ ) $ $ $ Diluted earnings per common share: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations — — ) — Net income (loss) $ ) $ $ $ We had a net loss for the three months ended June 30, 2016. Accordingly, our diluted earnings per share calculation for the three months ended June 30, 2016 was equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. Shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive are as follows: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share Weighted-average price per share $ $ $ $ |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Jun. 30, 2016 | |
Financial Instruments and Fair Value Measurement | |
Financial Instruments and Fair Value Measurement | 4. Financial Instruments and Fair Value Measurement The estimated fair value of our available-for-sale securities, reflected on our Consolidated Condensed Balance Sheets as Investments, is based on market quotes. The following is a summary of available-for-sale securities, which excludes assets held in a Non-qualified Supplemental Savings Plan: Gross Gross Estimated Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) Equity securities June 30, 2016 $ $ $ $ Equity securities September 30, 2015 $ $ $ $ On an ongoing basis we evaluate the marketable equity securities to determine if any decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis established. We review several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the length of time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. One of our securities was in an unrealized loss position for under 30 days at September 30, 2015 and then dropped below cost again in December 2015 and continued to be in a loss position through August 4, 2016. The security is in the international offshore drilling industry which is cyclical and has been impacted by the downturn in the energy sector. Considering the factors above including the limited time that the security was in an unrealized position and based on our ability and intent to hold these investments until the fair value recovers, impairment was not considered other-than-temporary at June 30, 2016. The assets held in the Non-qualified Supplemental Savings Plan are carried at fair value which totaled $12.8 million at June 30, 2016 and $12.9 million at September 30, 2015. The assets are comprised of mutual funds that are measured using Level 1 inputs. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government. The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those investments. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: · Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. · Level 2 — Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. At June 30, 2016, our financial instruments utilizing Level 1 inputs include cash equivalents, equity securities with active markets, money market funds we have elected to classify as restricted assets that are included in other current assets and other assets. Also included is cash denominated in a foreign currency that we have elected to classify as restricted to be used to settle the remaining liabilities of discontinued operations. For these items, quoted current market prices are readily available. At June 30, 2016, financial instruments utilizing level 2 inputs include bank certificates of deposit included in short-term investments and other current assets. Currently, we do not have any financial instruments utilizing Level 3 inputs. The following table summarizes our assets measured at fair value presented in our Consolidated Condensed Balance Sheet as of June 30, 2016: Total Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ $ — $ $ — Corporate debt securities — — U.S. government and federal agency securities — Total short-term investments — Cash and cash equivalents — Investments — — Other current assets — Other assets — — Total assets measured at fair value $ $ $ $ — Nonrecurring fair value measurements: Assets: Assets held for sale (1) $ $ — $ — $ (1) Represents the book value as of June 30, 2016 of decommissioned rigs and rig related equipment written down to their estimated recoverable amounts at June 30, 2016. These assets are included in assets held for sale in our Consolidated Condensed Balance Sheets. The following information presents the supplemental fair value information about long-term fixed-rate debt at June 30, 2016 and September 30, 2015: June 30, September 30, 2016 2015 (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ The fair value at June 30, 2016 for the $40 million fixed-rate debt was estimated using discounted cash flows at rates reflecting current interest rates at similar maturities plus a credit spread which was estimated using the outstanding market information on debt instruments with a similar credit profile to us. The debt was valued using a Level 2 input. The fair value for the $500 million fixed-rate debt was based on broker quotes at June 30, 2016. The notes are classified within Level 2 as they are not actively traded in markets. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2016 | |
Shareholders' Equity | |
Shareholders' Equity | 5. Shareholders’ Equity The Company has authorization from the Board of Directors for the repurchase of up to four million shares per calendar year. The repurchases may be made using our cash and cash equivalents or other available sources. We have had no purchases of common shares in fiscal 2016. During the nine months ended June 30, 2015, we purchased 810,097 common shares at an aggregate cost of $59.7 million, which are held as treasury shares. Components of accumulated other comprehensive income (loss) were as follows: June 30, September 30, 2016 2015 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ ) $ ) After-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ ) $ ) The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the three and nine months ended June 30, 2016: Three Months Ended June 30, 2016 Unrealized Appreciation on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at April 1, 2016 $ $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income — Net current-period other comprehensive income Balances at June 30, 2016 $ $ ) $ ) Nine Months Ended June 30, 2016 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at October 1, 2015 $ $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2016 $ $ ) $ ) The following provides detail about accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Operations during the three and nine months ended June 30, 2016: Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Three Months Ended June 30, Nine Months Ended June 30, Affected Line Item in the Condensed Consolidated (Loss) Components 2016 2015 2016 2015 Statement of Operations (in thousands) (in thousands) Defined Benefit Pension Items Amortization of net actuarial loss $ $ $ $ General and administrative ) ) ) ) Income tax provision Total reclassifications for the period $ $ $ $ Net of tax |
Cash Dividends
Cash Dividends | 9 Months Ended |
Jun. 30, 2016 | |
Cash Dividends | |
Cash Dividends | 6. Cash Dividends The $0.6875 per share cash dividend declared March 2, 2016, was paid June 1, 2016. On June 1, 2016, a cash dividend of $0.70 per share was declared for shareholders of record on August 15, 2016, payable September 1, 2016. The dividend payable is included in accounts payable in the Consolidated Condensed Balance Sheets. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation On March 2, 2011, the 2010 Long-Term Incentive Plan (the “2010 Plan”) was approved by our stockholders. The 2010 Plan, among other things, authorizes the Human Resources Committee of the Board to grant non-qualified stock options and restricted stock awards to selected employees and to non-employee Directors. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. There were 876,379 non-qualified stock options and 294,575 shares of restricted stock awards granted in the nine months ended June 30, 2016. Awards outstanding in the 2005 Long-Term Incentive Plan (the “2005 Plan”) remain subject to the terms and conditions of that plan. A summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense is as follows: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Compensation expense Stock options $ $ $ $ Restricted stock $ $ $ $ STOCK OPTIONS The following summarizes the weighted-average assumptions utilized in determining the fair value of options granted during the nine months ended June 30, 2016 and 2015: 2016 2015 Risk-free interest rate % % Expected stock volatility % % Dividend yield % % Expected term (in years) Risk-Free Interest Rate. The risk-free interest rate is based on U.S. Treasury securities for the expected term of the option. Expected Volatility Rate. Expected volatility is based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the option. Expected Dividend Yield. The expected dividend yield is based on our current dividend yield. Expected Term. The expected term of the options granted represents the period of time that they are expected to be outstanding. We estimate the expected term of options granted based on historical experience with grants and exercises. A summary of stock option activity under all existing long-term incentive plans for the three and nine months ended June 30, 2016 is presented in the following tables: Three Months Ended June 30, 2016 Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Options (in thousands) Price (in years) (in millions) Outstanding at April 1, 2016 $ Granted — — Exercised ) Forfeited/Expired ) Outstanding at June 30, 2016 $ $ Vested and expected to vest at June 30, 2016 $ $ Exercisable at June 30, 2016 $ $ Nine Months Ended June 30, 2016 Weighted- Average Shares Exercise Options (in thousands) Price Outstanding at October 1, 2015 $ Granted Exercised ) Forfeited/Expired ) Outstanding at June 30, 2016 $ The weighted-average fair value of options granted in the first quarter of fiscal 2016 was $13.12. No options were granted in the second and third quarters of fiscal 2016. The total intrinsic value of options exercised during the three and nine months ended June 30, 2016 was $0.9 million and $6.0 million, respectively. As of June 30, 2016, the unrecognized compensation cost related to stock options was $8.9 million which is expected to be recognized over a weighted-average period of 3.0 years. RESTRICTED STOCK Restricted stock awards consist of our common stock and are time-vested over three to six years. We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards under the 2010 Plan is determined based on the closing price of our shares on the grant date. As of June 30, 2016, there was $23.9 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.4 years. A summary of the status of our restricted stock awards as of June 30, 2016 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended June 30, 2016 Weighted- Average Shares Grant-Date Restricted Stock Awards (in thousands) Fair Value Unvested at October 1, 2015 $ Granted Vested (1) ) Forfeited ) Unvested at June 30, 2016 $ (1) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2016 | |
Debt | |
Debt | 8. Debt At June 30, 2016 and September 30, 2015, we had the following unsecured long-term debt outstanding: Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2016 2015 2016 2015 (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2016 $ $ $ ) $ ) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 ) ) ) ) Less long-term debt due within one year ) ) Long-term debt $ $ $ ) $ ) We have $40 million senior unsecured fixed-rate notes outstanding at June 30, 2016 that matured in July 2016. The final annual principal repayment of $40 million along with interest was paid in July 2016. On March 19, 2015, we issued $500 million of 4.65 percent 10-year unsecured senior notes. The net proceeds, after discount and issuance cost, have been or will be used for general corporate purposes, including capital expenditures associated with our rig construction program. Interest is payable semi-annually on March 15 and September 15. The debt discount is being amortized to interest expense using the effective interest method. The debt issuance costs are amortized straight-line over the stated life of the obligation, which approximates the effective yield method. At June 30, 2016 we had a $300 million unsecured revolving credit facility with no borrowings, but there were three letters of credit outstanding in the amount of $40.3 million. This facility was terminated on July 13, 2016, and the letters of credit were transferred to a new $300 million unsecured revolving credit facility which will mature on July 13, 2021. The new facility has $75 million available to use as letters of credit. The majority of any borrowings under the facility would accrue interest at a spread over the London Interbank Offered Rate (LIBOR). We also pay a commitment fee based on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined according to a scale based on a ratio of our total debt to total capitalization. The spread over LIBOR ranges from 1.125 percent to 1.75 percent per annum and commitment fees range from .15 percent to .30 percent per annum. Based on our debt to total capitalization on June 30, 2016, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively. There is one financial covenant in the facility which requires us to maintain a funded leverage ratio (as defined) of less than 50 percent. The credit facility contains additional terms, conditions, restrictions, and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality At June 30, 2016, we had two letters of credit outstanding, totaling $12 million that were issued to support international operations. These letters of credit were issued separately from the $300 million credit facility discussed in the preceding paragraph and do not reduce the available borrowing capacity of that facility. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Income Taxes | 9. Income Taxes Our effective tax rate for the first nine months of fiscal 2016 and 2015 was 62.9 percent and 35.2 percent, respectively. The effective tax rate for the third quarter of fiscal 2016 and 2015 was -15.5 percent and 30.2 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 35.0 percent primarily due to state and foreign income taxes and the tax benefit from the Internal Revenue Code Section 199 deduction for domestic production activities. The effective tax rate for the nine months ended June 30, 2016 was significantly impacted by reduced earnings before taxes, in conjunction with a December 2015 tax law change which resulted in a reduction of the fiscal 2015 Internal Revenue Code Section 199 deduction for domestic production activities. For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax positions associated with our U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we do not expect the increases or decreases to have a material effect on results of operations or financial position. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies In conjunction with our current drilling rig construction program, purchase commitments for equipment, parts and supplies of approximately $4.9 million are outstanding at June 30, 2016. We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies , and, therefore, we do not record gain contingencies or recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A., filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. (“PDVSA”) and PDVSA Petroleo, S.A. (“Petroleo”). Our subsidiaries seek damages for the taking of their Venezuelan drilling business in violation of international law and for breach of contract. While there exists the possibility of realizing a recovery, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. No gain contingencies are recognized in our Consolidated Financial Statements. The Company and its subsidiaries are parties to various pending legal actions arising in the ordinary course of our business. We maintain insurance against certain business risks subject to certain deductibles. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves and insurance, that the ultimate resolution of such items will not have a material adverse impact on our financial condition, cash flows, or results of operations. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed. On November 8, 2013, the United States District Court for the Eastern District of Louisiana approved the previously disclosed October 30, 2013 plea agreement between our wholly owned subsidiary, Helmerich & Payne International Drilling Co., and the United States Department of Justice, United States Attorney’s Office for the Eastern District of Louisiana (“DOJ”). The court’s approval of the plea agreement resolved the DOJ’s investigation into certain choke manifold testing irregularities that occurred in 2010 at one of Helmerich & Payne International Drilling Co.’s offshore platform rigs in the Gulf of Mexico. We have been engaged in discussions with the Inspector General’s office of the Department of Interior regarding the same events that were the subject of the DOJ’s investigation. Although we presently believe that the outcome of our discussions will not have a material adverse effect on the Company, we cannot estimate the amount of any potential loss, nor can we provide any assurances as to the timing or eventual outcome of these discussions. On or about April 28, 2015, Joshua Keel (“Keel”), an employee of Helmerich & Payne International Drilling Co. (“HPIDC”), filed a petition in the 152 nd Judicial Court for Harris County, Texas (Cause No. 2015-24531) against Helmerich & Payne Inc., HPIDC, the operator, and several subcontractors of the operator. The suit arises from injuries Keel sustained in an accident that occurred while he was working on HPIDC Rig 223 in New Mexico in July of 2014. Keel alleges that the defendants were negligent and negligent per se , acted recklessly, intentionally, and/or with an utterly wanton disregard for the rights and safety of the plaintiff and has recently indicated he will seek damages well in excess of $100 million. Pursuant to the terms of the drilling contract between HPIDC and the operator, HPIDC has indemnified most of the co-defendants in the lawsuit, subject to certain reservations. We believe we have meritorious defenses to this matter and intend to vigorously defend the Company and HPIDC, both of whom have motions for summary judgment pending. The trial for this matter is set to begin September 19, 2016. We will continue to defend our position and will look to our insurance carriers to respond to any liability that may arise from this incident, including our contractual indemnity obligations; however, we cannot predict the outcome. We have accrued the amount of our self-insured retention. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Segment Information | 11. Segment Information We operate principally in the contract drilling industry. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. To provide information about the different types of business activities in which we operate, we have included Offshore and International Land, along with our U.S. Land reportable operating segment, as separate reportable operating segments. Additionally, each reportable operating segment is a strategic business unit that is managed separately. Our primary international areas of operation include Colombia, Ecuador, Argentina, Bahrain, and the U.A.E. Other includes additional non-reportable operating segments. Revenues included in Other consist primarily of rental income. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions. We evaluate segment performance based on income or loss from continuing operations (segment operating income) before income taxes which includes: · revenues from external and internal customers · direct operating costs · depreciation and · allocated general and administrative costs but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided. Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance by presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods. Summarized financial information of our reportable segments for the three months ended June 30, 2016 and 2015 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling: U.S. Land $ — $ $ Offshore — International Land — ) — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015, as adjusted Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Summarized financial information of our reportable segments for the nine months ended June 30, 2016 and 2015 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — ) — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015, as adjusted Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ The following table reconciles segment operating income per the table above to income from continuing operations before income taxes as reported on the Consolidated Condensed Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands) (in thousands) Segment operating income $ $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ) Operating income (loss) ) Other income (expense): Interest and dividend income Interest expense ) ) ) ) Other ) Total other income (expense) ) ) ) ) Income (loss) from continuing operations before income taxes $ ) $ $ $ The following table presents total assets by reportable segment: September 30, June 30, 2016 2015 (as adjusted) (in thousands) Total assets U.S. Land $ $ Offshore International Land Other Investments and corporate operations Total assets from continued operations Discontinued operations $ $ The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands) (in thousands) Operating revenues United States $ $ $ $ Argentina Colombia Ecuador Other foreign Total $ $ $ $ |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 9 Months Ended |
Jun. 30, 2016 | |
Pensions and Other Post-retirement Benefits | |
Pensions and Other Post-retirement Benefits | 12. Pensions and Other Post-retirement Benefits The following provides information at June 30, 2016 and 2015 related to the Company-sponsored domestic defined benefit pension plan: Components of Net Periodic Benefit Cost Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss Settlement Net pension expense $ $ $ $ We record settlement expense when benefit payments exceed the total annual service and interest costs. Employer Contributions We did not contribute to the Pension Plan during the nine months ended June 30, 2016. We could make contributions for the remainder of fiscal 2016 to fund distributions in lieu of liquidating assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 13. Supplemental Cash Flow Information Capital expenditures on the Consolidated Condensed Statements of Cash Flows do not include additions which have been incurred but not paid for as of the end of the period. The following table reconciles total capital expenditures incurred to total capital expenditures in the Consolidated Condensed Statements of Cash Flows: Nine Months Ended June 30, 2016 2015 (as adjusted) (in thousands) Capital expenditures incurred $ $ Additions incurred prior year but paid for in current period Additions incurred but not paid for as of the end of the period ) ) Capital expenditures per Consolidated Condensed Statements of Cash Flows $ $ |
International Risk Factors
International Risk Factors | 9 Months Ended |
Jun. 30, 2016 | |
International Risk Factors | |
International Risk Factors | 14. International Risk Factors We currently have operations in South America, the Middle East and Africa. In the future, we may further expand the geographic reach of our operations. As a result, we are exposed to certain political, economic and other uncertainties not encountered in U.S. operations, including increased risks of social unrest, strikes, terrorism, war, kidnapping of employees, nationalization, forced negotiation or modification of contracts, difficulty resolving disputes and enforcing contract provisions, expropriation of equipment as well as expropriation of oil and gas exploration and drilling rights, taxation policies, foreign exchange restrictions and restrictions on repatriation of income and capital, currency rate fluctuations, increased governmental ownership and regulation of the economy and industry in the markets in which we operate, economic and financial instability of national oil companies, and restrictive governmental regulation, bureaucratic delays and general hazards associated with foreign sovereignty over certain areas in which operations are conducted. South American countries, in particular, have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. From time to time these risks have impacted our business. For example, on June 30, 2010, the Venezuelan government expropriated 11 rigs and associated real and personal property owned by our Venezuelan subsidiary. Prior thereto, we also experienced currency devaluation losses in Venezuela and difficulty repatriating U.S. dollars to the United States. Today, our contracts for work in foreign countries generally provide for payment in U.S. dollars. However, in Argentina we are paid in Argentine pesos. The Argentine branch of one of our second-tier subsidiaries then remits U.S. dollars to its U.S. parent by converting the Argentine pesos into U.S. dollars through the Argentine Foreign Exchange Market and repatriating the U.S. dollars. In the future, other contracts or applicable law may require payments to be made in foreign currencies. As such, there can be no assurance that we will not experience in Argentina or elsewhere a devaluation of foreign currency, foreign exchange restrictions or other difficulties repatriating U.S. dollars even if we are able to negotiate contract provisions designed to mitigate such risks. For the nine months ended June 30, 2016, we experienced aggregate foreign currency losses of $9.4 million. The losses are primarily the result of a sharp devaluation of the Argentine peso in December 2015. It is expected that the Argentine peso will be allowed to float in the free exchange market and foreign exchange restrictions will be less prohibitive. However, whether in Argentina or elsewhere, in the event of future payments in foreign currencies and an inability to timely exchange foreign currencies for U.S. dollars, we may incur currency devaluation losses which could have a material adverse impact on our business, financial condition and results of operations. There can be no assurance that there will not be changes in local laws, regulations and administrative requirements or the interpretation thereof which could have a material adverse effect on the profitability of our operations or on our ability to continue operations in certain areas. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests and through entities (including joint ventures) in which we hold only a minority interest or pursuant to arrangements under which we conduct operations under contract to local entities. While we believe that neither operating through such entities nor pursuant to such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms we find acceptable. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the nine months ended June 30, 2016, approximately 13.3 percent of our consolidated operating revenues were generated from international locations in our contract drilling business. During the nine months ended June 30, 2016, approximately 80.7 percent of operating revenues from international locations were from operations in South America. All of the South American operating revenues were from Argentina, Colombia and Ecuador. The future occurrence of one or more international events arising from the types of risks described above could have a material adverse impact on our business, financial condition and results of operations. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Jun. 30, 2016 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 15. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes virtually all existing revenue recognition guidance. In May 2016, accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. This additional guidance does not change the core principle of the revenue recognition guidance issued by the FASB in May 2014, rather, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The ASU provides for full retrospective, modified retrospective, or use of the cumulative effect method during the period of adoption. We have not yet determined which adoption method we will employ. In July 2015, the FASB extended the effective date of this standard to interim and annual periods beginning on or after December 15, 2017. We are currently evaluating the potential effects of the adoption of this update on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions of ASU 2016-01 are effective for interim and annual periods starting after December 15, 2017. At adoption, a cumulative-effect adjustment to beginning retained earnings will be recorded. We will adopt this standard on October 1, 2018. Subsequent to adoption, changes in the fair value of our available-for-sale investments will be recognized in net income and the effect will be subject to stock market fluctuations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 will require organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jun. 30, 2016 | |
Guarantor and Non-Guarantor Financial Information | |
Guarantor and Non-Guarantor Financial Information | 16. Guarantor and Non-Guarantor Financial Information In March 2015, Helmerich & Payne International Drilling Co. (“the issuer”), a wholly-owned subsidiary of Helmerich & Payne, Inc. (“parent”, “the guarantor”), issued senior unsecured notes with an aggregate principal amount of $500.0 million. The notes are fully and unconditionally guaranteed by the parent. No subsidiaries of parent currently guarantee the notes, subject to certain provisions that if any subsidiary guarantees certain other debt of the issuer or parent, then such subsidiary will provide a guarantee of the obligations under the notes. In connection with the notes, we are providing the following condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co. and parent/guarantor, Helmerich & Payne, Inc., in accordance with the Commission disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) ) ) Other income, net ) Interest expense ) ) ) — ) Equity in net loss of subsidiaries ) ) — — Loss from continuing operations before income taxes ) ) ) ) Income tax provision ) ) — Loss from continuing operations ) ) ) ) Income from discontinued operations before income taxes — — — Income tax provision — — — Loss from discontinued operations — — ) — ) Net loss $ ) $ ) $ ) $ $ ) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ ) $ ) $ ) $ $ ) Other comprehensive income, net of income taxes: Unrealized appreciation on securities, net — — — Minimum pension liability adjustments, net — — Other comprehensive income — — Comprehensive loss $ ) $ ) $ ) $ $ ) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — Income from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income (loss) of subsidiaries ) — — Income (loss) from continuing operations before income taxes ) Income tax provision ) ) — Income (loss) from continuing operations ) Income from discontinued operations before income taxes — — — Income tax provision — — — Loss from discontinued operations — — ) — ) Net income (loss) $ $ ) $ $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ $ ) $ $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income (loss) $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — Income from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — ) — ) Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Prepaid expenses and other ) Assets held for sale — — — Current assets of discontinued operations — — — Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — Total assets $ $ $ $ ) $ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — Total noncurrent liabilities ) Shareholders’ equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive loss ) — ) ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Deferred income taxes — ) Prepaid expenses and other ) Current assets of discontinued operations — — — Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — Total assets $ $ $ $ ) $ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — Total noncurrent liabilities ) Shareholders’ equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income (loss) ) — ) ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Purchase of short-term investments — ) — — ) Proceeds from sale of short-term investments — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — Debt issuance costs — ) — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — Net cash provided by (used in) financing activities ) ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, beginning of period ) — Cash and cash equivalents, end of period $ ) $ $ $ — $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Net cash provided by (used in) Investing activities ) ) — ) FINANCING ACTIVITIES: Proceeds from senior notes, net of discount — — — Debt issuance costs — ) — — ) Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Net increase in bank overdraft — — — Dividends paid ) — — — ) Intercompany transfers ) — — — Repurchase of common stock ) — — — ) Exercise of stock options, net of tax withholding ) — — — ) Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation — Net cash provided by (used in) financing activities ) — Net increase (decrease) in cash and cash equivalents ) — Cash and cash equivalents, beginning of period ) — Cash and cash equivalents, end of period $ ) $ $ $ — $ |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2016 | |
Subsequent Events | |
Subsequent Events | 17. Subsequent Events Due to the downturn in the oil and gas industry from low oil prices, our customers have reduced their drilling activity. Based on received early termination notices, early termination revenue recognized is expected to be approximately $30 million during the fourth quarter of fiscal 2016. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | |
Schedule of restatement of financials from adoption of accounting principle change | After Voluntary Change in Accounting As Reported Adjustments Principle Three Months Ended June 30, 2015 (in thousands) Operating revenues $ $ $ Operating costs, excluding depreciation ) Net income Diluted earnings per common share — Nine Months Ended June 30, 2015 (in thousands) Operating revenues $ $ $ Operating costs, excluding depreciation Net income Diluted earnings per common share September 30, 2015 (in thousands) Total assets $ $ ) $ Total liabilities ) Total shareholders’ equity ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Earnings per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations ) ) ) ) Net income (loss) ) Adjustment for basic earnings per share: Earnings allocated to unvested shareholders ) ) ) ) Numerator for basic earnings per share: From continuing operations ) From discontinued operations ) ) ) ) ) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — Numerator for diluted earnings per share: From continuing operations ) From discontinued operations ) ) ) ) $ ) $ $ $ Denominator: Denominator for basic earnings per share — weighted-average shares Effect of dilutive shares from stock options and restricted stock — Denominator for diluted earnings per share — adjusted weighted-average shares Basic earnings per common share: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations — — ) — Net income (loss) $ ) $ $ $ Diluted earnings per common share: Income (loss) from continuing operations $ ) $ $ $ Loss from discontinued operations — — ) — Net income (loss) $ ) $ $ $ |
Schedule of shares attributable to outstanding equity awards excluded from the calculation of diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share Weighted-average price per share $ $ $ $ |
Financial Instruments and Fai29
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Financial Instruments and Fair Value Measurement | |
Summary of available-for-sale securities | Gross Gross Estimated Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) Equity securities June 30, 2016 $ $ $ $ Equity securities September 30, 2015 $ $ $ $ |
Summary of assets measured at fair value | Total Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ $ — $ $ — Corporate debt securities — — U.S. government and federal agency securities — Total short-term investments — Cash and cash equivalents — Investments — — Other current assets — Other assets — — Total assets measured at fair value $ $ $ $ — Nonrecurring fair value measurements: Assets: Assets held for sale (1) $ $ — $ — $ (1) Represents the book value as of June 30, 2016 of decommissioned rigs and rig related equipment written down to their estimated recoverable amounts at June 30, 2016. These assets are included in assets held for sale in our Consolidated Condensed Balance Sheets. |
Summary of supplemental fair value information about long-term fixed-rate debt | June 30, September 30, 2016 2015 (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Shareholders' Equity | |
Schedule of components of accumulated other comprehensive income (loss) | June 30, September 30, 2016 2015 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ ) $ ) After-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ ) $ ) |
Summary of the changes in accumulated other comprehensive income (loss), net of tax, by component | Three Months Ended June 30, 2016 Unrealized Appreciation on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at April 1, 2016 $ $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income — Net current-period other comprehensive income Balances at June 30, 2016 $ $ ) $ ) Nine Months Ended June 30, 2016 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at October 1, 2015 $ $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2016 $ $ ) $ ) |
Schedule of accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Operations | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Three Months Ended June 30, Nine Months Ended June 30, Affected Line Item in the Condensed Consolidated (Loss) Components 2016 2015 2016 2015 Statement of Operations (in thousands) (in thousands) Defined Benefit Pension Items Amortization of net actuarial loss $ $ $ $ General and administrative ) ) ) ) Income tax provision Total reclassifications for the period $ $ $ $ Net of tax |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Compensation expense Stock options $ $ $ $ Restricted stock $ $ $ $ |
Summary of weighted-average assumptions utilized in determining the fair value of options granted | 2016 2015 Risk-free interest rate % % Expected stock volatility % % Dividend yield % % Expected term (in years) |
Summary of stock option activity under all existing long-term incentive plans | Three Months Ended June 30, 2016 Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Options (in thousands) Price (in years) (in millions) Outstanding at April 1, 2016 $ Granted — — Exercised ) Forfeited/Expired ) Outstanding at June 30, 2016 $ $ Vested and expected to vest at June 30, 2016 $ $ Exercisable at June 30, 2016 $ $ Nine Months Ended June 30, 2016 Weighted- Average Shares Exercise Options (in thousands) Price Outstanding at October 1, 2015 $ Granted Exercised ) Forfeited/Expired ) Outstanding at June 30, 2016 $ |
Summary of restricted stock awards and changes in restricted stock outstanding | Nine Months Ended June 30, 2016 Weighted- Average Shares Grant-Date Restricted Stock Awards (in thousands) Fair Value Unvested at October 1, 2015 $ Granted Vested (1) ) Forfeited ) Unvested at June 30, 2016 $ (1) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Debt | |
Schedule of components of unsecured long-term debt outstanding | Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2016 2015 2016 2015 (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2016 $ $ $ ) $ ) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 ) ) ) ) Less long-term debt due within one year ) ) Long-term debt $ $ $ ) $ ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Summary of financial information of the entity's reportable segments for continuing operations | Summarized financial information of our reportable segments for the three months ended June 30, 2016 and 2015 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling: U.S. Land $ — $ $ Offshore — International Land — ) — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015, as adjusted Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Summarized financial information of our reportable segments for the nine months ended June 30, 2016 and 2015 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — ) — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015, as adjusted Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ |
Schedule of reconciliation of segment operating income to income from continuing operations before income taxes | Schedule of reconciliation of segment operating income to income from continuing operations before income taxes Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands) (in thousands) Segment operating income $ $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ) Operating income (loss) ) Other income (expense): Interest and dividend income Interest expense ) ) ) ) Other ) Total other income (expense) ) ) ) ) Income (loss) from continuing operations before income taxes $ ) $ $ $ |
Schedule of total assets by reportable segment | September 30, June 30, 2016 2015 (as adjusted) (in thousands) Total assets U.S. Land $ $ Offshore International Land Other Investments and corporate operations Total assets from continued operations Discontinued operations $ $ |
Schedule of revenues from external customers by country based on the location of service provided | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 (as adjusted) 2016 2015 (as adjusted) (in thousands) (in thousands) Operating revenues United States $ $ $ $ Argentina Colombia Ecuador Other foreign Total $ $ $ $ |
Pensions and Other Post-retir34
Pensions and Other Post-retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Pensions and Other Post-retirement Benefits | |
Schedule of components of Net Periodic Benefit Cost | Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss Settlement Net pension expense $ $ $ $ |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | Nine Months Ended June 30, 2016 2015 (as adjusted) (in thousands) Capital expenditures incurred $ $ Additions incurred prior year but paid for in current period Additions incurred but not paid for as of the end of the period ) ) Capital expenditures per Consolidated Condensed Statements of Cash Flows $ $ |
Guarantor and Non-Guarantor F36
Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Guarantor and Non-Guarantor Financial Information | |
Schedule of Consolidated Condensed Statements of Operations | CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) ) ) Other income, net ) Interest expense ) ) ) — ) Equity in net loss of subsidiaries ) ) — — Loss from continuing operations before income taxes ) ) ) ) Income tax provision ) ) — Loss from continuing operations ) ) ) ) Income from discontinued operations before income taxes — — — Income tax provision — — — Loss from discontinued operations — — ) — ) Net loss $ ) $ ) $ ) $ $ ) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — Income from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income (loss) of subsidiaries ) — — Income (loss) from continuing operations before income taxes ) Income tax provision ) ) — Income (loss) from continuing operations ) Income from discontinued operations before income taxes — — — Income tax provision — — — Loss from discontinued operations — — ) — ) Net income (loss) $ $ ) $ $ CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ $ $ ) $ Operating costs and other ) Operating income (loss) from continuing operations ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — Income from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — ) — ) Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ |
Schedule of Consolidated Condensed Statements of Comprehensive Income | CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ ) $ ) $ ) $ $ ) Other comprehensive income, net of income taxes: Unrealized appreciation on securities, net — — — Minimum pension liability adjustments, net — — Other comprehensive income — — Comprehensive loss $ ) $ ) $ ) $ $ ) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ $ ) $ $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income (loss) $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ |
Schedule of Consolidated Condensed Balance Sheets | CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Prepaid expenses and other ) Assets held for sale — — — Current assets of discontinued operations — — — Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — Total assets $ $ $ $ ) $ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — Total noncurrent liabilities ) Shareholders’ equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive loss ) — ) ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Deferred income taxes — ) Prepaid expenses and other ) Current assets of discontinued operations — — — Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — Total assets $ $ $ $ ) $ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — Total noncurrent liabilities ) Shareholders’ equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income (loss) ) — ) ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ |
Schedule of Consolidated Condensed Statements of Cash Flows | CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Purchase of short-term investments — ) — — ) Proceeds from sale of short-term investments — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — Debt issuance costs — ) — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — Net cash provided by (used in) financing activities ) ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, beginning of period ) — Cash and cash equivalents, end of period $ ) $ $ $ — $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Net cash provided by (used in) Investing activities ) ) — ) FINANCING ACTIVITIES: Proceeds from senior notes, net of discount — — — Debt issuance costs — ) — — ) Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Net increase in bank overdraft — — — Dividends paid ) — — — ) Intercompany transfers ) — — — Repurchase of common stock ) — — — ) Exercise of stock options, net of tax withholding ) — — — ) Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation — Net cash provided by (used in) financing activities ) — Net increase (decrease) in cash and cash equivalents ) — Cash and cash equivalents, beginning of period ) — Cash and cash equivalents, end of period $ ) $ $ $ — $ |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 |
Basis of presentation | ||||||
Cumulative effect of an accounting change to retained earnings net of income tax | $ 1,600 | |||||
Net income (loss) from continuing operations | $ (21,193) | $ 90,899 | $ 19,879 | $ 448,064 | ||
Adjustment for loss from discontinued operations | 7 | 27 | 3,872 | 41 | ||
Operating revenues | 366,486 | 661,445 | 1,292,524 | 2,607,902 | ||
Operating costs, excluding depreciation | 186,146 | 350,640 | 684,401 | 1,377,202 | ||
Net income | $ (21,200) | $ 90,872 | $ 16,007 | $ 448,023 | ||
Diluted earnings per common share (in dollars per share) | $ (0.20) | $ 0.83 | $ 0.13 | $ 4.10 | ||
Total assets | $ 6,976,519 | $ 6,976,519 | $ 7,147,242 | |||
Total liabilities | 2,251,396 | |||||
Total shareholders' equity | 4,701,462 | 4,701,462 | 4,895,846 | |||
Early termination revenue | 80,700 | $ 93,000 | 189,200 | $ 188,800 | ||
Abandonments | 1,200 | 900 | 13,500 | |||
Asset impairment charge | 6,250 | 6,250 | ||||
Assets held for sale | 21,772 | 21,772 | ||||
Foreign currency gains (losses) | (1,100) | (300) | (9,400) | 1,500 | ||
Previous Accounting Guidance | ||||||
Basis of presentation | ||||||
Net income (loss) from continuing operations | (2,400) | $ 800 | ||||
Adjustment for loss from discontinued operations | (4,000) | |||||
U.S. Land | ||||||
Basis of presentation | ||||||
Asset impairment charge | $ 6,300 | |||||
As Reported | ||||||
Basis of presentation | ||||||
Operating revenues | 659,694 | 2,599,331 | ||||
Operating costs, excluding depreciation | 351,670 | 1,375,241 | ||||
Net income | $ 90,860 | $ 443,439 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.83 | $ 4.06 | ||||
Total assets | 7,152,012 | |||||
Total liabilities | 2,254,560 | |||||
Total shareholders' equity | 4,897,452 | |||||
Adjustments | ||||||
Basis of presentation | ||||||
Operating revenues | $ 1,751 | $ 8,571 | ||||
Operating costs, excluding depreciation | (1,030) | 1,961 | ||||
Net income | $ 12 | $ 4,584 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.04 | |||||
Total assets | (4,770) | |||||
Total liabilities | (3,164) | |||||
Total shareholders' equity | $ (1,606) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Loss from discontinued operations | $ (7) | $ (27) | $ (3,872) | $ (41) |
Venezuela | ||||
Loss from discontinued operations | $ 3,900 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Income (loss) from continuing operations | $ (21,193) | $ 90,899 | $ 19,879 | $ 448,064 |
Loss from discontinued operations | (7) | (27) | (3,872) | (41) |
NET INCOME (LOSS) | (21,200) | 90,872 | 16,007 | 448,023 |
Adjustment for basic earnings per share: | ||||
Earnings allocated to unvested shareholders | (451) | (558) | (1,410) | (2,801) |
Numerator for basic earnings per share: | ||||
From continuing operations | (21,644) | 90,341 | 18,469 | 445,263 |
From discontinued operations | (7) | (27) | (3,872) | (41) |
Net income (loss) attributable to parent, basic | (21,651) | 90,314 | 14,597 | 445,222 |
Adjustment for diluted earnings per share: | ||||
Effect of reallocating undistributed earnings of unvested shareholders | 1 | 10 | ||
Numerator for diluted earnings per share: | ||||
From continuing operations | (21,644) | 90,342 | 18,469 | 445,273 |
From discontinued operations | (7) | (27) | (3,872) | (41) |
Net income (loss) attributable to parent, diluted | $ (21,651) | $ 90,315 | $ 14,597 | $ 445,232 |
Denominator: | ||||
Denominator for basic earnings per share - weighted-average shares | 108,047 | 107,652 | 107,970 | 107,759 |
Effect of dilutive shares from stock options and restricted stock (in shares) | 817 | 553 | 812 | |
Denominator for diluted earnings per share - adjusted weighted-average shares | 108,047 | 108,469 | 108,523 | 108,571 |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.20) | $ 0.84 | $ 0.18 | $ 4.13 |
Loss from discontinued operations (in dollars per share) | (0.04) | |||
Net income (loss) (in dollars per share) | (0.20) | 0.84 | 0.14 | 4.13 |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (0.20) | 0.83 | 0.17 | 4.10 |
Loss from discontinued operations (in dollars per share) | (0.04) | |||
Net income (loss) (in dollars per share) | $ (0.20) | $ 0.83 | $ 0.13 | $ 4.10 |
Outstanding equity awards | ||||
Shares excluded from calculation of diluted earnings per share | 3,409 | 592 | 1,861 | 667 |
Weighted-average price per share (in dollars per share) | $ 51.94 | $ 73.36 | $ 63.70 | $ 72.85 |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurement - Equity Securities (Details) $ in Thousands | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($)item |
Available-for-sale securities | ||
Number of securities in an unrealized loss position under 30 days | item | 1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Non-qualified Supplemental Savings Plan | ||
Assets held in Non-qualified Supplement Savings Plan, at fair value | $ 12,800 | $ 12,900 |
Equity securities | ||
Available-for-sale securities | ||
Cost | 64,462 | 64,462 |
Gross Unrealized Gains | 33,257 | 28,530 |
Gross Unrealized Losses | 10,669 | 1,509 |
Estimated Fair Value | $ 87,050 | $ 91,483 |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurement - Assets measured at fair value and Supplemental fair value information (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
Supplemental fair value information about long-term fixed-rate debt | ||
Carrying value of long-term fixed-rate debt | $ 532,400 | $ 531,500 |
Fixed-rate debt | 540,000 | 540,000 |
Unsecured senior notes issued July 21, 2009 | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fixed-rate debt | 40,000 | 40,000 |
Unsecured senior notes issued March 19, 2015 | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fixed-rate debt | 500,000 | 500,000 |
Total Measure at Fair Value | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 49,565 | |
Assets: | ||
Cash and cash equivalents | 907,032 | |
Investments | 87,050 | |
Other current assets | 26,813 | |
Other assets | 2,000 | |
Total assets measured at fair value | 1,072,460 | |
Total Measure at Fair Value | Nonrecurring basis | ||
Assets: | ||
Assets held for sale | 3,840 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 17,751 | |
Assets: | ||
Cash and cash equivalents | 907,032 | |
Investments | 87,050 | |
Other current assets | 26,563 | |
Other assets | 2,000 | |
Total assets measured at fair value | 1,040,396 | |
Significant Other Observable Inputs (Level 2) | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fair value of long-term fixed-rate debt | 569,400 | $ 553,500 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 31,814 | |
Assets: | ||
Other current assets | 250 | |
Total assets measured at fair value | 32,064 | |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets: | ||
Assets held for sale | 3,840 | |
Certificate of deposit | Total Measure at Fair Value | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 2,000 | |
Certificate of deposit | Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 2,000 | |
Corporate debt securities | Total Measure at Fair Value | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 20,608 | |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 20,608 | |
U.S. government and federal agency securities | Total Measure at Fair Value | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 26,957 | |
U.S. government and federal agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 17,751 | |
U.S. government and federal agency securities | Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Short-term investments: | ||
Short-term investments | $ 9,206 |
Shareholders' Equity - AOCI Com
Shareholders' Equity - AOCI Components (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | Mar. 31, 2016 | |
Repurchase of shares | ||||
Repurchase of common stock (in shares) | 0 | 810,097 | ||
Aggregate cost of treasury shares purchase | $ 59,700 | |||
After-tax amounts: | ||||
Stockholders' Equity Attributable to Parent | $ 4,701,462 | $ 4,895,846 | ||
Maximum | ||||
Repurchase of shares | ||||
Number of common shares authorized to be repurchased | 4,000,000 | |||
Unrealized appreciation (depreciation) on securities | ||||
Pre-tax amounts: | ||||
Accumulated other comprehensive income (loss) before tax | $ 22,587 | 27,021 | ||
After-tax amounts: | ||||
Stockholders' Equity Attributable to Parent | 14,482 | 17,201 | $ 4,738 | |
Defined benefit pension plan | ||||
Pre-tax amounts: | ||||
Accumulated other comprehensive income (loss) before tax | (28,666) | (30,144) | ||
After-tax amounts: | ||||
Stockholders' Equity Attributable to Parent | (17,638) | (18,578) | (17,952) | |
Accumulated other comprehensive income (loss) | ||||
Pre-tax amounts: | ||||
Accumulated other comprehensive income (loss) before tax | (6,079) | (3,123) | ||
After-tax amounts: | ||||
Stockholders' Equity Attributable to Parent | $ (3,156) | $ (1,377) | $ (13,214) |
Shareholders' Equity - AOCI Cha
Shareholders' Equity - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | $ 4,895,846 | |
Balance | $ 4,701,462 | 4,701,462 |
Unrealized appreciation (depreciation) on securities | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | 4,738 | 17,201 |
Other comprehensive income (loss) before reclassifications | 9,744 | (2,719) |
Net current-period other comprehensive income (loss) | 9,744 | (2,719) |
Balance | 14,482 | 14,482 |
Defined benefit pension plan | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | (17,952) | (18,578) |
Amounts reclassified from accumulated other comprehensive income | 314 | 940 |
Net current-period other comprehensive income (loss) | 314 | 940 |
Balance | (17,638) | (17,638) |
Accumulated other comprehensive income (loss) | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | (13,214) | (1,377) |
Other comprehensive income (loss) before reclassifications | 9,744 | (2,719) |
Amounts reclassified from accumulated other comprehensive income | 314 | 940 |
Net current-period other comprehensive income (loss) | 10,058 | (1,779) |
Balance | $ (3,156) | $ (3,156) |
Shareholders' Equity - AOCI Rec
Shareholders' Equity - AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | ||||
General and administrative | $ (46,496) | $ (29,253) | $ (112,381) | $ (96,984) |
Reclassification out of AOCI | Amortization of net actuarial loss | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | ||||
General and administrative | 493 | 309 | 1,479 | 927 |
Income tax provision | (179) | (112) | (539) | (337) |
Total reclassifications for the period | $ 314 | $ 197 | $ 940 | $ 590 |
Cash Dividends (Details)
Cash Dividends (Details) - $ / shares | Jun. 01, 2016 | Mar. 02, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Cash Dividends | ||||||
Cash dividends declared, per share (in dollars per share) | $ 0.70 | $ 0.6875 | $ 0.7000 | $ 0.6875 | $ 2.075 | $ 2.0625 |
Cash dividend paid, per share (in dollars per share) | $ 0.6875 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense & Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Common-stock based award plan | ||||||
Compensation expense (in dollars) | $ 5,674 | $ 6,041 | $ 19,661 | $ 19,120 | ||
Stock options | ||||||
Common-stock based award plan | ||||||
The period from the grant date after which options expire | 10 years | |||||
Compensation expense (in dollars) | $ 1,722 | 1,930 | $ 7,048 | $ 6,900 | ||
Weighted-average assumptions utilized in determining the fair value of options | ||||||
Risk-free interest rate (as a percent) | 1.80% | 1.70% | ||||
Expected stock volatility (as a percent) | 37.60% | 36.90% | ||||
Dividend yield (as a percent) | 4.60% | 3.90% | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | ||||
Options | ||||||
Options outstanding at the beginning of the period (in shares) | 3,456,000 | 2,776,000 | 2,776,000 | |||
Granted (in shares) | 0 | 0 | 876,379 | |||
Exercised (in shares) | (24,000) | (204,000) | ||||
Forfeited/Expired (in shares) | (23,000) | (39,000) | ||||
Option outstanding at the end of the period (in shares) | 3,409,000 | 3,456,000 | 3,409,000 | |||
Vested and expected to vest at the end of the period (in shares) | 3,381,000 | 3,381,000 | ||||
Exercisable at the end of the period (in shares) | 2,244,000 | 2,244,000 | ||||
Weighted-Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 51.85 | $ 48.51 | $ 48.51 | |||
Granted (in dollars per share) | 58.25 | |||||
Exercised (in dollars per share) | 28 | 30.73 | ||||
Forfeited/Expired (in dollars per share) | 63.46 | 61.04 | ||||
Outstanding at the end of the period (in dollars per share) | 51.94 | $ 51.85 | 51.94 | |||
Vested and expected to vest at the end of the period (in dollars per share) | 51.89 | 51.89 | ||||
Exercisable at the end of the period (in dollars per share) | $ 46.66 | $ 46.66 | ||||
Weighted- Average Remaining Contractual Term | ||||||
Outstanding at the end of the period | 6 years | |||||
Vested and expected to vest at the end of the period | 6 years | |||||
Exercisable at the end of the period | 4 years 6 months | |||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the period (in dollars) | $ 55,600 | $ 55,600 | ||||
Vested and expected to vest at the end of the period (in dollars) | 55,300 | 55,300 | ||||
Exercisable at the end of the period (in dollars) | 48,000 | 48,000 | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 13.12 | |||||
Total intrinsic value of options exercised (in dollars) | 900 | 6,000 | ||||
Unrecognized compensation cost (in dollars) | 8,900 | $ 8,900 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years | |||||
Restricted stock | ||||||
Common-stock based award plan | ||||||
Granted (in shares) | 294,575 | |||||
Compensation expense (in dollars) | 3,952 | $ 4,111 | $ 12,613 | $ 12,220 | ||
Aggregate Intrinsic Value | ||||||
Unrecognized compensation cost (in dollars) | $ 23,900 | $ 23,900 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 4 months 24 days | |||||
Restricted stock | Minimum | ||||||
Common-stock based award plan | ||||||
Vesting period | 3 years | |||||
Restricted stock | Maximum | ||||||
Common-stock based award plan | ||||||
Vesting period | 6 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) - Restricted stock | 9 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Restricted stock awards activity, shares | |
Unvested at the beginning of the period (in shares) | shares | 668,000 |
Granted (in shares) | shares | 294,575 |
Vested (in shares) | shares | (256,000) |
Forfeited (in shares) | shares | (36,000) |
Unvested at the end of the period (in shares) | shares | 670,000 |
Restricted stock awards activity, weighted average grant date fair value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 67.03 |
Granted (in dollars per share) | $ / shares | 58.25 |
Vested (in dollars per share) | $ / shares | 64.75 |
Forfeited/Expired (in dollars per share) | $ / shares | 63.68 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 64.22 |
Debt (Details)
Debt (Details) $ in Thousands | Jul. 13, 2016USD ($) | Mar. 19, 2015USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($)item | Sep. 30, 2015USD ($) |
Debt | |||||
Unsecured long-term debt | $ 540,000 | $ 540,000 | |||
Less long-term debt due within one year | 40,000 | 40,000 | |||
Long-term debt | 500,000 | 500,000 | |||
Unamortized discount and debt issuance costs | (7,616) | (8,463) | |||
Less unamortized debt issuance costs | (766) | (906) | |||
Less unamortized discount and debt issuance costs | (6,850) | (7,557) | |||
Issued to support international operations | |||||
Debt | |||||
Letters of credit outstanding/issued | $ 12,000 | ||||
Number of letters of credit outstanding | item | 2 | ||||
Unsecured revolving credit facility mature May 25, 2017 | |||||
Debt | |||||
Borrowing amount | $ 300,000 | ||||
Borrowing amount outstanding | 0 | ||||
Unsecured revolving credit facility mature May 25, 2017 | Letter of credit | |||||
Debt | |||||
Letters of credit outstanding/issued | $ 40,300 | ||||
Number of letters of credit outstanding | item | 3 | ||||
Unsecured revolving credit facility mature on July 13, 2021 | |||||
Debt | |||||
Borrowing amount | $ 300,000 | ||||
Financial covenants | item | 1 | ||||
Unsecured revolving credit facility mature on July 13, 2021 | Minimum | |||||
Debt | |||||
Commitment fee (as a percent) | 0.15% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | Maximum | |||||
Debt | |||||
Commitment fee (as a percent) | 0.30% | ||||
Funded leverage ratio (as a percent) | 50.00% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt | |||||
Interest spread on borrowings (as a percent) | 1.125% | ||||
Commitment fee (as a percent) | 1.125% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt | |||||
Interest spread on borrowings (as a percent) | 1.75% | ||||
Commitment fee (as a percent) | 0.15% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | Letter of credit | |||||
Debt | |||||
Available borrowing capacity to use for letters of credit | $ 75,000 | ||||
Unsecured senior notes issued July 21, 2009 | |||||
Debt | |||||
Unsecured long-term debt | $ 40,000 | 40,000 | |||
Unamortized discount and debt issuance costs | (213) | (498) | |||
Annual principal repayments | $ 40,000 | ||||
Unsecured senior notes issued March 19, 2015 | |||||
Debt | |||||
Unsecured long-term debt | 500,000 | 500,000 | |||
Unamortized discount and debt issuance costs | $ (7,403) | $ (7,965) | |||
Debt issued | $ 500,000 | ||||
Long-term debt stated interest rate percentage | 4.65% | ||||
Term of debt | 10 years |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | (15.50%) | 30.20% | 62.90% | 35.20% |
Effective income tax rates as compared to the U.S. Federal income tax rate | ||||
U.S. federal statutory rate (as a percent) | 35.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Apr. 28, 2015 | Jun. 30, 2016 |
Purchase obligations | ||
Purchase orders outstanding for drilling equipment | $ 4.9 | |
Gain contingencies recognized in consolidated financial statements | $ 0 | |
Pending litigation | Minimum | Keel accident case | ||
Commitments and Contingencies | ||
Damages value | $ 100 |
Segment Information - Income by
Segment Information - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment information | ||||
Sales | $ 366,486 | $ 661,445 | $ 1,292,524 | $ 2,607,902 |
Segment Operating Income (Loss) | 20,709 | 153,093 | 138,197 | 752,807 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 20,709 | 153,093 | 138,197 | 752,807 |
Income from asset sales | 547 | 1,791 | 7,820 | 8,819 |
Corporate general and administrative costs and corporate depreciation | (34,512) | (19,835) | (78,982) | (64,880) |
Operating income (loss) from continuing operations | (13,256) | 135,049 | 67,035 | 696,746 |
Other income (expense): | ||||
Interest and dividend income | 778 | 1,588 | 2,310 | 4,447 |
Interest expense | (6,407) | (6,136) | (16,652) | (9,326) |
Other | 534 | (281) | 926 | 88 |
Total other income (expense) | (5,095) | (4,829) | (13,416) | (4,791) |
Income (loss) from continuing operations before income taxes | (18,351) | 130,220 | 53,619 | 691,955 |
Other | ||||
Segment information | ||||
Sales | 2,983 | 3,208 | 10,182 | 11,129 |
Segment Operating Income (Loss) | (2,186) | (2,324) | (4,839) | (7,440) |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | (2,186) | (2,324) | (4,839) | (7,440) |
Operating segment | ||||
Segment information | ||||
Sales | 366,692 | 661,649 | 1,293,159 | 2,608,562 |
Operating segment | Other | ||||
Segment information | ||||
Sales | 3,189 | 3,412 | 10,817 | 11,789 |
Inter-Segment | ||||
Segment information | ||||
Sales | (206) | (204) | (635) | (660) |
Inter-Segment | Other | ||||
Segment information | ||||
Sales | 206 | 204 | 635 | 660 |
Contract Drilling: | ||||
Segment information | ||||
Sales | 363,503 | 658,237 | 1,282,342 | 2,596,773 |
Segment Operating Income (Loss) | 22,895 | 155,417 | 143,036 | 760,247 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 22,895 | 155,417 | 143,036 | 760,247 |
Contract Drilling: | U.S. Land | ||||
Segment information | ||||
Sales | 285,028 | 494,615 | 1,004,116 | 2,103,125 |
Segment Operating Income (Loss) | 25,802 | 121,734 | 143,855 | 664,722 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 25,802 | 121,734 | 143,855 | 664,722 |
Contract Drilling: | Offshore | ||||
Segment information | ||||
Sales | 30,492 | 57,071 | 106,697 | 189,386 |
Segment Operating Income (Loss) | 2,084 | 14,684 | 13,105 | 55,386 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 2,084 | 14,684 | 13,105 | 55,386 |
Contract Drilling: | International Land | ||||
Segment information | ||||
Sales | 47,983 | 106,551 | 171,529 | 304,262 |
Segment Operating Income (Loss) | (4,991) | 18,999 | (13,924) | 40,139 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | (4,991) | 18,999 | (13,924) | 40,139 |
Contract Drilling: | Operating segment | ||||
Segment information | ||||
Sales | 363,503 | 658,237 | 1,282,342 | 2,596,773 |
Contract Drilling: | Operating segment | U.S. Land | ||||
Segment information | ||||
Sales | 285,028 | 494,615 | 1,004,116 | 2,103,125 |
Contract Drilling: | Operating segment | Offshore | ||||
Segment information | ||||
Sales | 30,492 | 57,071 | 106,697 | 189,386 |
Contract Drilling: | Operating segment | International Land | ||||
Segment information | ||||
Sales | $ 47,983 | $ 106,551 | $ 171,529 | $ 304,262 |
Segment Information - Income Re
Segment Information - Income Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Segment information | |||||
Total assets | $ 6,976,519 | $ 6,976,519 | $ 7,147,242 | ||
Operating revenues | 366,486 | $ 661,445 | 1,292,524 | $ 2,607,902 | |
United States | |||||
Segment information | |||||
Operating revenues | 318,059 | 547,043 | 1,113,542 | 2,281,961 | |
Argentina | |||||
Segment information | |||||
Operating revenues | 33,208 | 53,778 | 118,365 | 128,527 | |
Colombia | |||||
Segment information | |||||
Operating revenues | 3,831 | 13,772 | 15,176 | 60,400 | |
Ecuador | |||||
Segment information | |||||
Operating revenues | 481 | 6,864 | 4,948 | 26,264 | |
Other foreign | |||||
Segment information | |||||
Operating revenues | 10,907 | 39,988 | 40,493 | 110,750 | |
Continued operations | |||||
Segment information | |||||
Total assets | 6,976,439 | 6,976,439 | 7,139,145 | ||
Discontinued operations. | |||||
Segment information | |||||
Total assets | 80 | 80 | 8,097 | ||
Other | |||||
Segment information | |||||
Operating revenues | 2,983 | 3,208 | 10,182 | 11,129 | |
Operating segment | |||||
Segment information | |||||
Total assets | 5,751,034 | 5,751,034 | 6,152,140 | ||
Operating revenues | 366,692 | 661,649 | 1,293,159 | 2,608,562 | |
Operating segment | U.S. Land | |||||
Segment information | |||||
Total assets | 5,113,421 | 5,113,421 | 5,429,179 | ||
Operating segment | Offshore | |||||
Segment information | |||||
Total assets | 108,656 | 108,656 | 118,852 | ||
Operating segment | International Land | |||||
Segment information | |||||
Total assets | 493,207 | 493,207 | 565,712 | ||
Operating segment | Other | |||||
Segment information | |||||
Total assets | 35,750 | 35,750 | 38,397 | ||
Operating revenues | 3,189 | $ 3,412 | 10,817 | $ 11,789 | |
Investments and corporate operations | |||||
Segment information | |||||
Total assets | $ 1,225,405 | $ 1,225,405 | $ 987,005 |
Pensions and Other Post-retir53
Pensions and Other Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of Net Periodic Benefit Cost | ||||
Interest cost | $ 1,116 | $ 1,171 | $ 3,347 | $ 3,513 |
Expected return on plan assets | (1,490) | (1,743) | (4,470) | (5,229) |
Recognized net actuarial loss | 493 | 309 | 1,479 | 927 |
Settlement | 1,889 | 1,200 | 3,343 | 1,200 |
Net pension expense | $ 2,008 | $ 937 | $ 3,699 | $ 411 |
Supplemental Cash Flow Inform54
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ||
Capital expenditures incurred | $ 198,606 | $ 882,079 |
Additions incurred prior year but paid for in current period | 25,344 | 123,548 |
Additions incurred but not paid for as of the end of the period | (4,401) | (34,025) |
Capital expenditures per Consolidated Condensed Statements of Cash Flows | $ 219,549 | $ 971,602 |
International Risk Factors (Det
International Risk Factors (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2010item | |
Number of rigs expropriated by Venezuelan government | 11 | ||||
Foreign currency losses | $ | $ (1.1) | $ (0.3) | $ (9.4) | $ 1.5 | |
Operating revenues | Geographic concentration risk | South America | |||||
Concentration percentage | 80.70% | ||||
Minimum | |||||
Number of geographical areas of operation to minimize risks | 1 | ||||
Contract Drilling: | Operating revenues | Geographic concentration risk | International locations | |||||
Concentration percentage | 13.30% |
Guarantor and Non-Guarantor F56
Guarantor and Non-Guarantor Financial Information - Debt (Details) - Unsecured senior notes issued March 19, 2015 $ in Millions | Mar. 19, 2015USD ($) |
Financial Information | |
Debt issued | $ 500 |
Issuer Subsidiary | |
Financial Information | |
Debt issued | $ 500 |
Guarantor and Non-Guarantor F57
Guarantor and Non-Guarantor Financial Information - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | $ 366,486 | $ 661,445 | $ 1,292,524 | $ 2,607,902 |
Operating costs and other | 379,742 | 526,396 | 1,225,489 | 1,911,156 |
Operating income (loss) from continuing operations | (13,256) | 135,049 | 67,035 | 696,746 |
Other income (expense), net | 1,312 | 1,307 | 3,236 | 4,535 |
Interest expense | (6,407) | (6,136) | (16,652) | (9,326) |
Income (loss) from continuing operations before income taxes | (18,351) | 130,220 | 53,619 | 691,955 |
Income tax provision | 2,842 | 39,321 | 33,740 | 243,891 |
Income (loss) from continuing operations | (21,193) | 90,899 | 19,879 | 448,064 |
Income (loss) from discontinued operations before income taxes | 2,193 | (27) | 2,241 | (118) |
Income tax provision | 2,200 | 6,113 | (77) | |
Loss from discontinued operations | (7) | (27) | (3,872) | (41) |
NET INCOME (LOSS) | (21,200) | 90,872 | 16,007 | 448,023 |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | (20) | (18) | (53) | (58) |
Operating costs and other | (290) | (1,026) | (1,093) | (3,092) |
Operating income (loss) from continuing operations | 270 | 1,008 | 1,040 | 3,034 |
Other income (expense), net | (270) | (1,007) | (1,040) | (3,033) |
Equity in net income (loss) of subsidiaries | 26,368 | (105,453) | 1,769 | (476,609) |
Income (loss) from continuing operations before income taxes | 26,368 | (105,452) | 1,769 | (476,608) |
Income (loss) from continuing operations | 26,368 | (105,452) | 1,769 | (476,608) |
NET INCOME (LOSS) | 26,368 | (105,452) | 1,769 | (476,608) |
Guarantor/Parent | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating costs and other | 3,712 | 3,072 | 9,573 | 9,152 |
Operating income (loss) from continuing operations | (3,712) | (3,072) | (9,573) | (9,152) |
Other income (expense), net | 16 | (103) | (235) | (100) |
Interest expense | (62) | (40) | (186) | (59) |
Equity in net income (loss) of subsidiaries | (18,572) | 92,413 | 22,042 | 453,478 |
Income (loss) from continuing operations before income taxes | (22,330) | 89,198 | 12,048 | 444,167 |
Income tax provision | (1,130) | (1,674) | (3,959) | (3,856) |
Income (loss) from continuing operations | (21,200) | 90,872 | 16,007 | 448,023 |
NET INCOME (LOSS) | (21,200) | 90,872 | 16,007 | 448,023 |
Issuer Subsidiary | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | 315,077 | 543,834 | 1,103,361 | 2,270,839 |
Operating costs and other | 314,620 | 423,409 | 1,003,369 | 1,600,530 |
Operating income (loss) from continuing operations | 457 | 120,425 | 99,992 | 670,309 |
Other income (expense), net | 1,290 | 1,565 | 2,680 | 6,224 |
Interest expense | (5,597) | (4,638) | (15,587) | (4,741) |
Equity in net income (loss) of subsidiaries | (7,796) | 13,040 | (23,811) | 23,131 |
Income (loss) from continuing operations before income taxes | (11,646) | 130,392 | 63,274 | 694,923 |
Income tax provision | 7,230 | 38,941 | 42,114 | 243,986 |
Income (loss) from continuing operations | (18,876) | 91,451 | 21,160 | 450,937 |
NET INCOME (LOSS) | (18,876) | 91,451 | 21,160 | 450,937 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | 51,429 | 117,629 | 189,216 | 337,121 |
Operating costs and other | 61,700 | 100,941 | 213,640 | 304,566 |
Operating income (loss) from continuing operations | (10,271) | 16,688 | (24,424) | 32,555 |
Other income (expense), net | 276 | 852 | 1,831 | 1,444 |
Interest expense | (748) | (1,458) | (879) | (4,526) |
Income (loss) from continuing operations before income taxes | (10,743) | 16,082 | (23,472) | 29,473 |
Income tax provision | (3,258) | 2,054 | (4,415) | 3,761 |
Income (loss) from continuing operations | (7,485) | 14,028 | (19,057) | 25,712 |
Income (loss) from discontinued operations before income taxes | 2,193 | (27) | 2,241 | (118) |
Income tax provision | 2,200 | 6,113 | (77) | |
Loss from discontinued operations | (7) | (27) | (3,872) | (41) |
NET INCOME (LOSS) | $ (7,492) | $ 14,001 | $ (22,929) | $ 25,671 |
Guarantor and Non-Guarantor f58
Guarantor and Non-Guarantor financial information - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | $ (21,200) | $ 90,872 | $ 16,007 | $ 448,023 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 9,744 | (3,307) | (2,719) | (46,754) |
Minimum pension liability adjustments, net | 314 | 197 | 940 | 590 |
Other comprehensive income (loss) | 10,058 | (3,110) | (1,779) | (46,164) |
Comprehensive income (loss) | (11,142) | 87,762 | 14,228 | 401,859 |
Reportable Legal Entities | Guarantor/Parent | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | (21,200) | 90,872 | 16,007 | 448,023 |
Other comprehensive income (loss), net of income taxes: | ||||
Minimum pension liability adjustments, net | 107 | 82 | 322 | 246 |
Other comprehensive income (loss) | 107 | 82 | 322 | 246 |
Comprehensive income (loss) | (21,093) | 90,954 | 16,329 | 448,269 |
Reportable Legal Entities | Issuer Subsidiary | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | (18,876) | 91,451 | 21,160 | 450,937 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 9,744 | (3,307) | (2,719) | (46,754) |
Minimum pension liability adjustments, net | 207 | 115 | 618 | 344 |
Other comprehensive income (loss) | 9,951 | (3,192) | (2,101) | (46,410) |
Comprehensive income (loss) | (8,925) | 88,259 | 19,059 | 404,527 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | (7,492) | 14,001 | (22,929) | 25,671 |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | (7,492) | 14,001 | (22,929) | 25,671 |
Eliminations | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | 26,368 | (105,452) | 1,769 | (476,608) |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | $ 26,368 | $ (105,452) | $ 1,769 | $ (476,608) |
Guarantor and Non-Guarantor F59
Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 907,032 | $ 729,384 | $ 774,540 | $ 360,307 |
Short-term investments | 49,565 | 45,543 | ||
Accounts receivable, net of reserve | 351,317 | 445,948 | ||
Inventories | 128,885 | 128,541 | ||
Prepaid expenses and other | 79,021 | 64,475 | ||
Assets held for sale | 21,772 | |||
Deferred income taxes | 17,206 | |||
Current assets of discontinued operations | 80 | 8,097 | ||
Total current assets | 1,537,672 | 1,439,194 | ||
Investments | 99,898 | 104,354 | ||
Property, plant and equipment, net | 5,306,434 | 5,563,170 | ||
Other assets | 32,515 | 40,524 | ||
Total assets | 6,976,519 | 7,147,242 | ||
Current liabilities: | ||||
Long-term debt due within one year | 39,234 | 39,094 | ||
Accounts payable | 92,692 | 108,169 | ||
Accrued liabilities | 194,645 | 197,557 | ||
Current liabilities of discontinued operations | 38 | 3,377 | ||
Total current liabilities | 326,609 | 348,197 | ||
Noncurrent liabilities: | ||||
Long-term debt | 493,150 | 492,443 | ||
Deferred income taxes | 1,358,093 | 1,295,916 | ||
Other | 93,221 | 110,120 | ||
Noncurrent liabilities of discontinued operations | 3,984 | 4,720 | ||
Total noncurrent liabilities | 1,948,448 | 1,903,199 | ||
Shareholders' equity: | ||||
Common stock | 11,138 | 11,099 | ||
Additional paid-in capital | 442,883 | 420,141 | ||
Retained earnings | 4,438,748 | 4,648,346 | ||
Accumulated other comprehensive loss | (3,156) | (1,377) | ||
Treasury stock, at cost | (188,151) | (182,363) | ||
Total shareholders' equity | 4,701,462 | 4,895,846 | ||
Total liabilities and shareholders' equity | 6,976,519 | 7,147,242 | ||
Eliminations | ||||
Current assets: | ||||
Accounts receivable, net of reserve | (871) | (5) | ||
Prepaid expenses and other | (2,017) | (7,903) | ||
Deferred income taxes | (4,905) | |||
Total current assets | (2,888) | (12,813) | ||
Intercompany | (1,707,082) | (1,439,161) | ||
Other assets | (10,479) | (8,153) | ||
Investment in subsidiaries | (5,849,057) | (5,851,341) | ||
Total assets | (7,569,506) | (7,311,468) | ||
Current liabilities: | ||||
Accounts payable | (856) | (5) | ||
Accrued liabilities | (2,032) | (11,103) | ||
Total current liabilities | (2,888) | (11,108) | ||
Noncurrent liabilities: | ||||
Deferred income taxes | (11,479) | (13,058) | ||
Intercompany | (1,705,982) | (1,435,961) | ||
Total noncurrent liabilities | (1,717,461) | (1,449,019) | ||
Shareholders' equity: | ||||
Common stock | (100) | (100) | ||
Additional paid-in capital | (47,919) | (46,173) | ||
Retained earnings | (5,799,382) | (5,801,212) | ||
Accumulated other comprehensive loss | (1,756) | (3,856) | ||
Total shareholders' equity | (5,849,157) | (5,851,341) | ||
Total liabilities and shareholders' equity | (7,569,506) | (7,311,468) | ||
Guarantor/Parent | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | (920) | (838) | (877) | (2,050) |
Accounts receivable, net of reserve | 39,698 | 152 | ||
Prepaid expenses and other | 7,997 | 20,018 | ||
Deferred income taxes | 2,834 | |||
Total current assets | 46,775 | 22,166 | ||
Investments | 12,848 | 12,871 | ||
Property, plant and equipment, net | 61,989 | 55,902 | ||
Intercompany | 15,982 | 15,875 | ||
Other assets | 10,713 | 8,387 | ||
Investment in subsidiaries | 5,645,245 | 5,623,754 | ||
Total assets | 5,793,552 | 5,738,955 | ||
Current liabilities: | ||||
Accounts payable | 80,926 | 80,673 | ||
Accrued liabilities | 20,936 | 10,688 | ||
Total current liabilities | 101,862 | 91,361 | ||
Noncurrent liabilities: | ||||
Intercompany | 971,750 | 733,008 | ||
Other | 18,478 | 18,740 | ||
Total noncurrent liabilities | 990,228 | 751,748 | ||
Shareholders' equity: | ||||
Common stock | 11,138 | 11,099 | ||
Additional paid-in capital | 442,883 | 420,141 | ||
Retained earnings | 4,438,748 | 4,648,346 | ||
Accumulated other comprehensive loss | (3,156) | (1,377) | ||
Treasury stock, at cost | (188,151) | (182,363) | ||
Total shareholders' equity | 4,701,462 | 4,895,846 | ||
Total liabilities and shareholders' equity | 5,793,552 | 5,738,955 | ||
Issuer Subsidiary | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 892,476 | 693,273 | 755,070 | 329,655 |
Short-term investments | 49,565 | 45,543 | ||
Accounts receivable, net of reserve | 269,495 | 374,383 | ||
Inventories | 88,438 | 88,010 | ||
Prepaid expenses and other | 33,403 | 6,713 | ||
Assets held for sale | 21,772 | |||
Deferred income taxes | 19,277 | |||
Total current assets | 1,355,149 | 1,227,199 | ||
Investments | 87,050 | 91,483 | ||
Property, plant and equipment, net | 4,840,172 | 5,063,705 | ||
Intercompany | 1,426,888 | 1,192,634 | ||
Other assets | 1,019 | 1,389 | ||
Investment in subsidiaries | 203,812 | 227,587 | ||
Total assets | 7,914,090 | 7,803,997 | ||
Current liabilities: | ||||
Long-term debt due within one year | 39,234 | 39,094 | ||
Accounts payable | 8,718 | 20,404 | ||
Accrued liabilities | 138,267 | 151,721 | ||
Total current liabilities | 186,219 | 211,219 | ||
Noncurrent liabilities: | ||||
Long-term debt | 493,150 | 492,443 | ||
Deferred income taxes | 1,321,148 | 1,275,428 | ||
Intercompany | 257,947 | 186,784 | ||
Other | 28,455 | 31,560 | ||
Total noncurrent liabilities | 2,100,700 | 1,986,215 | ||
Shareholders' equity: | ||||
Common stock | 100 | 100 | ||
Additional paid-in capital | 47,372 | 45,824 | ||
Retained earnings | 5,577,943 | 5,556,783 | ||
Accumulated other comprehensive loss | 1,756 | 3,856 | ||
Total shareholders' equity | 5,627,171 | 5,606,563 | ||
Total liabilities and shareholders' equity | 7,914,090 | 7,803,997 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 15,476 | 36,949 | $ 20,347 | $ 32,702 |
Accounts receivable, net of reserve | 42,995 | 71,418 | ||
Inventories | 40,447 | 40,531 | ||
Prepaid expenses and other | 39,638 | 45,647 | ||
Current assets of discontinued operations | 80 | 8,097 | ||
Total current assets | 138,636 | 202,642 | ||
Property, plant and equipment, net | 404,273 | 443,563 | ||
Intercompany | 264,212 | 230,652 | ||
Other assets | 31,262 | 38,901 | ||
Total assets | 838,383 | 915,758 | ||
Current liabilities: | ||||
Accounts payable | 3,904 | 7,097 | ||
Accrued liabilities | 37,474 | 46,251 | ||
Current liabilities of discontinued operations | 38 | 3,377 | ||
Total current liabilities | 41,416 | 56,725 | ||
Noncurrent liabilities: | ||||
Deferred income taxes | 48,424 | 33,546 | ||
Intercompany | 476,285 | 516,169 | ||
Other | 46,288 | 59,820 | ||
Noncurrent liabilities of discontinued operations | 3,984 | 4,720 | ||
Total noncurrent liabilities | 574,981 | 614,255 | ||
Shareholders' equity: | ||||
Additional paid-in capital | 547 | 349 | ||
Retained earnings | 221,439 | 244,429 | ||
Total shareholders' equity | 221,986 | 244,778 | ||
Total liabilities and shareholders' equity | $ 838,383 | $ 915,758 |
Guarantor and Non-Guarantor F60
Guarantor and Non-Guarantor Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | $ 615,410 | $ 1,151,556 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (219,549) | (971,602) |
Purchase of short-term investments | (36,958) | |
Proceeds from sales of short-term investments | 32,681 | |
Proceeds from asset sales | 12,804 | 17,757 |
Net cash used in investing activities | (211,022) | (953,845) |
FINANCING ACTIVITIES: | ||
Proceeds from senior notes, net of discount | 497,125 | |
Debt issuance costs | (32) | (5,202) |
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Net increase in bank overdraft | 10,824 | |
Dividends paid | (224,040) | (223,827) |
Repurchase of common stock | (59,654) | |
Exercise of stock options, net of tax withholding | 483 | (609) |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,104) |
Excess tax benefit from stock-based compensation | 761 | 2,969 |
Net cash provided by (used in) financing activities | (226,740) | 216,522 |
Net increase in cash and cash equivalents | 177,648 | 414,233 |
Cash and cash equivalents, beginning of period | 729,384 | 360,307 |
Cash and cash equivalents, end of period | 907,032 | 774,540 |
Guarantor/Parent | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 4,127 | 66,448 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (15,515) | (18,708) |
Intercompany transfers | 15,515 | 18,708 |
Proceeds from asset sales | 8 | 1 |
Net cash used in investing activities | 8 | 1 |
FINANCING ACTIVITIES: | ||
Dividends paid | (224,040) | (223,827) |
Intercompany transfers | 224,040 | 223,827 |
Repurchase of common stock | (59,654) | |
Exercise of stock options, net of tax withholding | 483 | (609) |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,104) |
Excess tax benefit from stock-based compensation | (788) | 91 |
Net cash provided by (used in) financing activities | (4,217) | (65,276) |
Net increase in cash and cash equivalents | (82) | 1,173 |
Cash and cash equivalents, beginning of period | (838) | (2,050) |
Cash and cash equivalents, end of period | (920) | (877) |
Issuer Subsidiary | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 631,371 | 1,068,214 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (200,611) | (911,844) |
Intercompany transfers | (15,515) | (18,708) |
Purchase of short-term investments | (36,958) | |
Proceeds from sales of short-term investments | 32,681 | |
Proceeds from asset sales | 10,956 | 16,804 |
Net cash used in investing activities | (209,447) | (913,748) |
FINANCING ACTIVITIES: | ||
Proceeds from senior notes, net of discount | 497,125 | |
Debt issuance costs | (32) | (5,202) |
Intercompany transfers | (224,040) | (223,827) |
Excess tax benefit from stock-based compensation | 1,351 | 2,853 |
Net cash provided by (used in) financing activities | (222,721) | 270,949 |
Net increase in cash and cash equivalents | 199,203 | 425,415 |
Cash and cash equivalents, beginning of period | 693,273 | 329,655 |
Cash and cash equivalents, end of period | 892,476 | 755,070 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | (20,088) | 16,894 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (3,423) | (41,050) |
Proceeds from asset sales | 1,840 | 952 |
Net cash used in investing activities | (1,583) | (40,098) |
FINANCING ACTIVITIES: | ||
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Net increase in bank overdraft | 10,824 | |
Excess tax benefit from stock-based compensation | 198 | 25 |
Net cash provided by (used in) financing activities | 198 | 10,849 |
Net increase in cash and cash equivalents | (21,473) | (12,355) |
Cash and cash equivalents, beginning of period | 36,949 | 32,702 |
Cash and cash equivalents, end of period | $ 15,476 | $ 20,347 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Subsequent Event | |||||
Early termination revenue | $ 80.7 | $ 93 | $ 189.2 | $ 188.8 | |
Subsequent Event. | |||||
Subsequent Event | |||||
Early termination revenue | $ 30 |